The sum of money that would be restored to a company's shareholders in the event of liquidation if all of the company's assets were sold and all of its debt was settled.
Equity, also known as shareholders' equity or owners' equity for privately held businesses, is the sum of money that would remain in the hands of a company's shareholders in the event that all of its assets were sold off and its liabilities were fully settled. It is the worth of company sales less any obligations owing by the company that were not transferred with the sale in the case of an acquisition.
Additionally, a company's book value may be represented through shareholder equity. Equity may occasionally be given in exchange for cash. Additionally, it symbolizes the proportionate ownership of a company's shares.
One of the most frequently used pieces of information by analysts to evaluate a company's financial health is equity, which can be found on a company's balance sheet.
If you have any other questions please feel free to reach out to us using the contact us page.Customer Support